Ameristar Casinos Reports First Quarter 2009 Results

LAS VEGAS, NV, Apr 29 (MARKET WIRE) --
Ameristar Casinos, Inc. (NASDAQ: ASCA) today announced financial results
for the first quarter of 2009.*

"Ameristar achieved record Adjusted EBITDA and Adjusted EPS in the first
quarter," said Gordon Kanofsky, Ameristar's Chief Executive Officer and
Vice Chairman. "This was largely because of our sustained emphasis on
achieving operational and marketing efficiencies, particularly during the
current recession. We also realized the highest quarterly Adjusted EBITDA
margin in the Company's history, which is evidence of our success in
transitioning to a nimbler and leaner organization.

"In addition, regulatory reform that took effect in Missouri late last
year continues to benefit our two properties in that state, particularly
St. Charles," Kanofsky continued. "Our preparations are on schedule for
the July 2, 2009 effective date of regulatory reform in Colorado at our
Black Hawk property. We believe the Missouri and Colorado regulatory
changes, coupled with our all-suite hotel, spa and conference center in
St. Charles that opened last spring and our soon-to-be completed luxury
hotel and spa in Black Hawk, will fuel additional profitable growth."

First Quarter 2009 Results

Consolidated net revenues decreased from $324.8 million in the prior-year
quarter to $315.8 million in the first quarter of 2009, mostly as a result
of the ongoing economic recession and increased competition that opened in
the second half of 2008 in our East Chicago and Vicksburg markets. "In
light of these factors, we're quite pleased to have experienced only a 2.7
percent decline in net revenues," Kanofsky said. Net revenues at our St.
Charles property increased 7.7 percent, to $77.2 million from $71.7
million in the prior-year quarter, driven primarily by the property's
hotel (which did not open fully until the second quarter of 2008) and
gains generated by the November 2008 regulatory reform.

Consolidated Adjusted EBITDA for the first quarter of 2009 increased 19.6
percent to $95.8 million compared to $80.1 million in the 2008 first
quarter. Adjusted EBITDA margin increased 5.6 percentage points, to 30.3
percent, compared to 24.7 percent in the first quarter of 2008. The
improvement in Adjusted EBITDA and the related margin was primarily
attributable to the previously mentioned operational and marketing
efficiencies and the positive effect from the regulatory reform in
Missouri.

"Five of our seven locations reported double-digit percent improvements in
Adjusted EBITDA, and all of our properties increased Adjusted EBITDA
margin over the prior-year quarter," Kanofsky said. "The successful
implementation of our restructuring companywide has produced this
significant improvement in profitability."

For the first quarter of 2009, we generated operating income of $69.3
million, compared to an operating loss of $77.1 million in the same period
in 2008.(1) For the first quarter of 2009, the Company reported net income
of $29.9 million, or $0.52 per diluted share, compared to a net loss of
$60.9 million, or $1.07 per diluted share, in the 2008 first quarter.(2)

Additional Financial Information

Debt. On March 13, 2009, we amended our senior credit facility to adjust
the maximum permitted total leverage and senior leverage ratios. The
amendment provides us significant relief under these covenants for the
foreseeable future (thereby improving our borrowing flexibility related to
currently available funds under our revolving loan facility). Additional
financial flexibility was created by provisions in the amendment that
expand our ability to incur unsecured debt and allow us to request lenders
to extend the maturity of their respective portions of the revolving loan
facility from Nov. 10, 2010 to Aug. 10, 2012. The amendment also increased
the interest rate add-on for term loan and revolving loan borrowings under
the senior credit facility by 125 basis points. In connection with the
amendment, we paid one-time fees totaling approximately $9.7 million, most
of which was capitalized and will be amortized over the remaining term of
the senior credit facility.

At March 31, 2009 and Dec. 31, 2008, total debt was $1.65 billion. Net
borrowings in the first quarter of 2009 totaled $2.7 million. At March 31,
2009, our total leverage and senior leverage ratios (each as defined in
the senior credit facility) were required to be no more than 6.00:1 and
5.75:1, respectively. As of that date, our total leverage ratio and senior
leverage ratio were each 4.93:1, which will result in a 12.5 basis-point
reduction beginning in early May in the interest rate add-on for the
revolving loan borrowings.

Interest Expense. For the first quarter of 2009, net interest expense was
$16.9 million, compared to $22.1 million in the prior-year first quarter,
a decrease of $5.2 million due to a lower weighted-average interest rate,
offset slightly by one-half month of increased interest rate add-ons
resulting from the credit facility amendment. Capitalized interest
decreased from $6.3 million for the first quarter of 2008 to $2.2 million
in the 2009 first quarter, due mostly to the 2008 completion of the St.
Charles hotel and Vicksburg expansion projects.

Stock-Based Compensation. For the quarter ended March 31, 2009,
stock-based compensation expense was $2.5 million. In the prior-year first
quarter, stock-based compensation expense totaled $3.1 million.

Capital Expenditures. For the first quarter, capital expenditures were
$41.8 million, including $32.7 million for the Black Hawk hotel
construction.

Outlook

"Despite expected continued difficult economic conditions in 2009, we
believe Ameristar is well positioned to continue to drive year-over-year
margin growth," Kanofsky said. "We also continue to aggressively evaluate
and adjust our operational structure and marketing strategies with the
goal of operating even more efficiently during this prolonged economic
downturn and beyond. In addition, our credit facility amendment provides
us with greater financial flexibility as we explore options to address
the November 2010 maturity date of our revolving debt.

"We also believe that regulatory reform in three of our key markets,
coupled with significant investments in two of those markets that should
drive future revenue growth, will enable Ameristar to emerge from the
recession stronger and more profitable."

In the second quarter of 2009, the Company currently expects:

depreciation to range from $26 million to $27 million

interest expense to be between $22 million and $23 million

the combined state and federal income tax rate to be in the range of 43
percent to 44 percent

capital spending of $35 million to $40 million, including approximately
$23 million for the Black Hawk hotel project

capitalized interest of $2 million to $3 million

non-cash stock-based compensation expense of $2 million to $3 million

Conference Call Information

We will hold a conference call to discuss our first-quarter results on
Wednesday, April 29, 2009 at 11:30 a.m. EDT. The call can be accessed live
by dialing (888) 694-4728 toll-free domestically, or (973) 582-2745, and
referencing conference ID number 94906555. Conference call participants
are requested to dial in at least five minutes early to ensure a prompt
start. Interested parties wishing to listen to the conference call and
view corresponding informative slides on the Internet may do so live at
our web site -- www.ameristar.com -- in "About Ameristar/Investor
Relations" under the "Quarterly Results' Conference Calls" section. The
conference call will be recorded and can be replayed from April 29, 2009
at 2:30 p.m. EDT until May 13, 2009 at 11:59 p.m. EDT. To listen to the
replay, call toll-free (800) 642-1687, or (706) 645-9291, and reference
the conference ID number above.

Forward-Looking Information

This release contains certain forward-looking information that generally
can be identified by the context of the statement or the use of
forward-looking terminology, such as "believes," "estimates,"
"anticipates," "intends," "expects," "plans," "is confident that,"
"should" or words of similar meaning, with reference to Ameristar or our
management. Similarly, statements that describe our future plans,
objectives, strategies, financial results or position, operational
expectations or goals are forward-looking statements. It is possible that
our expectations may not be met due to various factors, many of which are
beyond our control, and we therefore cannot give any assurance that such
expectations will prove to be correct. For a discussion of relevant
factors, risks and uncertainties that could materially affect our future
results, attention is directed to "Item 1A. Risk Factors" and "Item 7.
Management's Discussion and Analysis of Financial Condition and Results
of Operations" in our Annual Report on Form 10-K for the year ended Dec.
31, 2008.

On a monthly basis, gaming regulatory authorities in certain states in
which we operate publish gross gaming revenue and/or certain other
financial information for the gaming facilities that operate within their
respective jurisdictions. Because various factors in addition to our gross
gaming revenue (including operating costs, promotional allowances and
corporate and other expenses) influence our operating income, EBITDA and
diluted earnings per share, such reported information, as it relates to
Ameristar, may not accurately reflect the results of our operations for
such periods or for future periods.

About Ameristar

Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and
entertainment company known for its premier properties characterized by
innovative architecture, state-of-the-art casino floors and superior
dining, lodging and entertainment offerings. Ameristar's focus on the
total entertainment experience and the highest-quality guest service has
earned it leading positions in the markets in which it operates. Founded
in 1954 in Jackpot, Nev., Ameristar has been a public company since
November 1993. The Company has a portfolio of eight casinos in seven
markets: Ameristar Casino Resort Spa St. Charles (greater St. Louis);
Ameristar Casino Hotel East Chicago (Chicagoland area); Ameristar Casino
Hotel Kansas City; Ameristar Casino Hotel Council Bluffs (Omaha, Neb., and
southwestern Iowa); Ameristar Casino Hotel Vicksburg (Jackson, Miss., and
Monroe, La.); Ameristar Casino Black Hawk (Denver metropolitan area); and
Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot,
Nev. (Idaho and the Pacific Northwest).

Visit Ameristar Casinos' web site at www.ameristar.com (which shall not be
deemed to be incorporated in or a part of this news release).

*For
the first quarter of 2009, EBITDA and Adjusted EBITDA are identical, and
diluted earnings per share (EPS) and Adjusted EPS are identical. Adjusted
EBITDA margin is Adjusted EBITDA as a percentage of net revenues. Please
refer to the tables near the end of this release for the reconciliation
of the non-GAAP financial measures EBITDA, Adjusted EBITDA and Adjusted
EPS reported throughout this release. Additionally, more information on
these non-GAAP financial measures can be found under the caption "Use of
Non-GAAP Financial Measures" at the end of this release.

(1) The first quarter 2008 operating loss was affected by a $129.0 million
non-cash impairment charge related to Ameristar Casino Hotel East Chicago;
$1.0 million of transition and rebranding costs related to the East
Chicago acquisition; $0.8 million of pre-opening expenses related to the
hotel at Ameristar Casino Resort Spa St. Charles; and $0.8 million in
ballot initiative costs related to the passage of regulatory reform in
Missouri and Colorado.

(2) The prior-year quarter included $78.4 million in after-tax impacts of
the non-cash impairment charge, the transition and rebranding costs,
pre-opening expenses and ballot initiative costs. Adjusted EPS for the
first quarter of 2008 was $0.30.

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Per Share Data)
(Unaudited)

Three Months Ended
March 31,
2009 2008
--------- ---------
REVENUES:
Casino $ 322,878 $ 331,757
Food and beverage 37,964 40,370
Rooms 14,676 10,940
Other 8,199 9,577
--------- ---------
383,717 392,644
Less: Promotional allowances (67,880) (67,876)
--------- ---------
Net revenues 315,837 324,768

OPERATING EXPENSES:
Casino 144,344 155,543
Food and beverage 16,505 18,978
Rooms 2,232 2,530
Other 3,392 6,075
Selling, general and administrative 53,534 64,113
Depreciation and amortization 26,472 25,520
Impairment loss on assets 52 129,065
--------- ---------
Total operating expenses 246,531 401,824

Income (loss) from operations 69,306 (77,056)

OTHER INCOME (EXPENSE):
Interest income 143 227
Interest expense, net (16,915) (22,053)
Net (loss) gain on disposition of assets (5) 75
Other (445) (852)
--------- ---------

INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) 52,084 (99,659)
Income tax provision (benefit) 22,184 (38,729)
--------- ---------
NET INCOME (LOSS) $ 29,900 $ (60,930)
========= =========

EARNINGS (LOSS) PER SHARE:
Basic $ 0.52 $ (1.07)
========= =========
Diluted $ 0.52 $ (1.07)
========= =========

CASH DIVIDENDS DECLARED PER SHARE $ - $ 0.11
========= =========

WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic 57,349 57,149
========= =========
Diluted 57,586 57,149
========= =========

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)

March 31, December 31,
Balance sheet data 2009 2008
------------ ------------
Cash and cash equivalents $ 85,738 $ 73,726
Total assets $ 2,240,836 $ 2,225,238
Total debt, including current maturities $ 1,651,199 $ 1,648,500
Stockholders' equity $ 372,346 $ 338,780

Three Months
Ended March 31,
Consolidated cash flow information 2009 2008
------------ ------------
Net cash provided by operating activities $ 69,039 $ 71,926
Net cash used in investing activities $ (50,484) $ (59,882)
Net cash used in financing activities $ (6,543) $ (31,643)

Net revenues
Ameristar St. Charles $ 77,172 $ 71,683
Ameristar East Chicago 67,627 75,352
Ameristar Kansas City 60,169 61,928
Ameristar Council Bluffs 42,250 45,511
Ameristar Vicksburg 33,119 33,686
Ameristar Black Hawk 20,396 20,273
Jackpot Properties 15,104 16,335
------------ ------------
Consolidated net revenues $ 315,837 $ 324,768
============ ============

Operating income (loss)
Ameristar St. Charles $ 21,956 $ 15,572
Ameristar East Chicago 12,537 (118,790)
Ameristar Kansas City 16,597 12,824
Ameristar Council Bluffs 12,719 12,036
Ameristar Vicksburg 10,800 11,162
Ameristar Black Hawk 3,875 2,815
Jackpot Properties 3,269 2,498
Corporate and other (12,447) (15,173)
------------ ------------
Consolidated operating income (loss) $ 69,306 $ (77,056)
============ ============

EBITDA
Ameristar St. Charles $ 28,642 $ 20,828
Ameristar East Chicago 16,083 (115,538)
Ameristar Kansas City 20,714 17,903
Ameristar Council Bluffs 15,624 15,226
Ameristar Vicksburg 15,067 14,614
Ameristar Black Hawk 6,622 5,680
Jackpot Properties 4,702 3,820
Corporate and other (11,676) (14,069)
------------ ------------
Consolidated EBITDA $ 95,778 $ (51,536)
============ ============

AMERISTAR CASINOS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED FINANCIAL DATA - CONTINUED
(Dollars in Thousands)
(Unaudited)

Three Months
Ended March 31,
2009 2008
-------- --------

Operating income (loss) margins (1)
Ameristar St. Charles 28.5% 21.7%
Ameristar East Chicago 18.5% (157.6%)
Ameristar Kansas City 27.6% 20.7%
Ameristar Council Bluffs 30.1% 26.4%
Ameristar Vicksburg 32.6% 33.1%
Ameristar Black Hawk 19.0% 13.9%
Jackpot Properties 21.6% 15.3%
Consolidated operating income (loss) margin 21.9% (23.7%)

EBITDA margins (2)
Ameristar St. Charles 37.1% 29.1%
Ameristar East Chicago 23.8% (153.3%)
Ameristar Kansas City 34.4% 28.9%
Ameristar Council Bluffs 37.0% 33.5%
Ameristar Vicksburg 45.5% 43.4%
Ameristar Black Hawk 32.5% 28.0%
Jackpot Properties 31.1% 23.4%
Consolidated EBITDA margin 30.3% (15.9%)

(1) Operating income (loss) margin is operating income (loss) as a
percentage of net revenues.

(2) EBITDA margin is EBITDA as a percentage of net revenues.

RECONCILIATION OF OPERATING INCOME (LOSS) TO EBITDA
(Dollars in Thousands)
(Unaudited)

The following table sets forth a reconciliation of operating income (loss),
a GAAP financial measure, to EBITDA, a non-GAAP financial measure.

Three Months
Ended March 31,
2009 2008
---------- ----------
Ameristar St. Charles:
Operating income $ 21,956 $ 15,572
Depreciation and amortization 6,686 5,256
---------- ----------
EBITDA $ 28,642 $ 20,828
========== ==========

Ameristar East Chicago:
Operating income (loss) $ 12,537 $ (118,790)
Depreciation and amortization 3,546 3,252
---------- ----------
EBITDA $ 16,083 $ (115,538)
========== ==========

Ameristar Kansas City:
Operating income $ 16,597 $ 12,824
Depreciation and amortization 4,117 5,079
---------- ----------
EBITDA $ 20,714 $ 17,903
========== ==========

Ameristar Council Bluffs:
Operating income $ 12,719 $ 12,036
Depreciation and amortization 2,905 3,190
---------- ----------
EBITDA $ 15,624 $ 15,226
========== ==========

Ameristar Vicksburg:
Operating income $ 10,800 $ 11,162
Depreciation and amortization 4,267 3,452
---------- ----------
EBITDA $ 15,067 $ 14,614
========== ==========

Ameristar Black Hawk:
Operating income $ 3,875 $ 2,815
Depreciation and amortization 2,747 2,865
---------- ----------
EBITDA $ 6,622 $ 5,680
========== ==========

Jackpot Properties:
Operating income $ 3,269 $ 2,498
Depreciation and amortization 1,433 1,322
---------- ----------
EBITDA $ 4,702 $ 3,820
========== ==========

Corporate and other:
Operating loss $ (12,447) $ (15,173)
Depreciation and amortization 771 1,104
---------- ----------
EBITDA $ (11,676) $ (14,069)
========== ==========

Consolidated:
Operating income (loss) $ 69,306 $ (77,056)
Depreciation and amortization 26,472 25,520
---------- ----------
EBITDA $ 95,778 $ (51,536)
========== ==========

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Dollars in Thousands)
(Unaudited)

Three Months Ended
March 31,
2009 2008
---------- ---------
EBITDA $ 95,778 $ (51,536)
Impairment loss on East Chicago intangible assets - 129,000
East Chicago transition and rebranding costs - 1,011
St. Charles hotel pre-opening expenses - 841
Missouri and Colorado ballot initiative costs - 791
---------- ---------
Adjusted EBITDA $ 95,778 $ 80,107
========== =========

RECONCILIATION OF EPS TO ADJUSTED EPS
(Unaudited)

The following table sets forth a reconciliation of diluted earnings (loss)
per share (EPS), a GAAP financial measure, to adjusted diluted earnings
per share (Adjusted EPS), a non-GAAP financial measure.

Three Months
Ended March 31,
2009 2008
-------- -------
Diluted earnings (loss) per share (EPS) $ 0.52 $ (1.07)
Impairment loss on East Chicago intangible assets - 1.34
East Chicago transition and rebranding costs - 0.01
St. Charles hotel pre-opening expenses - 0.01
Missouri and Colorado ballot initiative costs - 0.01
-------- -------
Adjusted diluted earnings per share (Adjusted EPS) $ 0.52 $ 0.30
======== =======

Use of Non-GAAP Financial Measures

Securities and Exchange Commission Regulation G, "Conditions for Use of
Non-GAAP Financial Measures," prescribes the conditions for use of
non-GAAP financial information in public disclosures. We believe our
presentations of the following non-GAAP financial measures are important
supplemental measures of operating performance to investors: earnings
before interest, taxes, depreciation and amortization (EBITDA), Adjusted
EBITDA and adjusted diluted earnings per share (Adjusted EPS). The
following discussion defines these terms and explains why we believe they
are useful measures of our performance.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in the gaming industry
that we believe, when considered with measures calculated in accordance
with United States generally accepted accounting principles, or GAAP,
gives investors a more complete understanding of operating results before
the impact of investing and financing transactions and income taxes and
facilitates comparisons between us and our competitors. In forecasting and
measuring our core operating results and in comparing period-to-period
results, management adjusts EBITDA, as appropriate, to exclude certain
non-recurring items.

The measure adjusting for such items, which we refer to as Adjusted
EBITDA, is a significant factor in management's internal evaluation of
total Company and individual property performance and in the evaluation of
incentive compensation for employees. Therefore, we believe Adjusted
EBITDA is useful to investors because it allows greater transparency
related to a significant measure used by management in its financial and
operational decision-making and because it permits investors similarly to
perform more meaningful analyses of past, present and future operating
results and evaluations of the results of core ongoing operations.
Furthermore, we believe investors would, in the absence of the Company's
disclosure of Adjusted EBITDA, attempt to use equivalent or similar
measures in assessment of our operating performance and the valuation of
our Company. We have reported Adjusted EBITDA to our investors in the past
and believe its inclusion at this time will provide consistency in our
financial reporting.

Adjusted EBITDA, as used in this press release, is EBITDA adjusted for
impairment charges related to intangible assets, transition and rebranding
costs, pre-opening expenses and ballot initiative costs. In future
periods, the adjustments we make to EBITDA in order to calculate Adjusted
EBITDA may be different than or in addition to those made in this
release. The foregoing tables reconcile Adjusted EBITDA to EBITDA and
operating income (loss), based upon GAAP.

Adjusted EPS

Adjusted EPS, as used in this press release, is diluted earnings (loss)
per share, excluding the after-tax per-share impacts of impairment charges
related to intangible assets, transition and rebranding costs, pre-opening
expenses and ballot initiative costs. Management adjusts EPS, when deemed
appropriate, for the evaluation of operating performance because we
believe that the exclusion of certain non-recurring items is necessary to
provide the most accurate measure of our core operating results and as a
means to compare period-to-period results. We have chosen to provide this
information to investors to enable them to perform more meaningful
analysis of past, present and future operating results and as a means to
evaluate the results of our core ongoing operations. Adjusted EPS is a
significant factor in the internal evaluation of total Company
performance and incentive compensation for senior management. Management
believes this measure is used by investors in their assessment of our
operating performance and the valuation of our Company. In future
periods, the adjustments we make to EPS in order to calculate Adjusted
EPS may be different than or in addition to those made in this release.
The foregoing table reconciles EPS to Adjusted EPS.

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA and Adjusted EPS has certain
limitations. Our presentation of EBITDA, Adjusted EBITDA and Adjusted EPS
may be different from the presentations used by other companies and
therefore comparability among companies may be limited. Depreciation
expense for various long-term assets, interest expense, income taxes and
other items have been and will be incurred and are not reflected in the
presentation of EBITDA or Adjusted EBITDA. Each of these items should also
be considered in the overall evaluation of our results. Additionally,
EBITDA and Adjusted EBITDA do not consider capital expenditures and other
investing activities and should not be considered as a measure of our
liquidity. We compensate for these limitations by providing the relevant
disclosure of our depreciation, interest and income tax expense, capital
expenditures and other items both in our reconciliations to the GAAP
financial measures and in our consolidated financial statements, all of
which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA and Adjusted EPS should be used in addition to and
in conjunction with results presented in accordance with GAAP. EBITDA,
Adjusted EBITDA and Adjusted EPS should not be considered as an
alternative to net income, operating income, EPS or any other operating
performance measure prescribed by GAAP, nor should these measures be
relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted
EBITDA and Adjusted EPS reflect additional ways of viewing our operations
that we believe, when viewed with our GAAP results and the
reconciliations to the corresponding GAAP financial measures, provide a
more complete understanding of factors and trends affecting our business
than could be obtained absent this disclosure. Management strongly
encourages investors to review our financial information in its entirety
and not to rely on a single financial measure.

CONTACTS:

Investors:
Tom Steinbauer
Senior Vice President, Chief Financial Officer
Ameristar Casinos, Inc.
(702) 567-7000

Media:
Rebecca Theim
Director of Communications
Ameristar Casinos, Inc.
Email Contact
(702) 567-7000

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